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1. Company Snapshot

1.a. Company Description

Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and British Virgin Islands.The company provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit.It also offers commercial and industrial, commercial multi-family, commercial real estate, and residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases.


In addition, the company provides investment banking, auto and equipment leasing and financing, broker-dealer, and insurance services; debit cards; and online banking services.As of December 31, 2021, it operated 169 branches; and 616 ATMs in Puerto Rico, 23 ATMs in the Virgin Islands, and 91 ATMs in the United States Mainland.Popular, Inc.


was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.

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1.b. Last Insights on BPOP

Popular, Inc.'s recent performance was driven by strong Q4 2025 earnings, beating estimates with $3.38 per share, up 34.7% year-over-year. Net interest income growth, fee growth, and rising loan balances fueled the outperformance. Management cited stronger profitability, solid loan growth, and stable credit trends during the earnings call. A positive 2026 outlook, with continued net interest income growth and modest expense increases, also contributed to the momentum. Analysts rate the stock as "Buy" with a 26.8% potential upside.

1.c. Company Highlights

2. Popular, Inc. Delivers Strong 2025 Results with Robust Net Income and NII Growth

Popular, Inc. reported a net income of $833 million for 2025, representing a 36% increase from 2024, driven by a significant rise in net interest income (NII) of 11% to $259 million. The company's Q4 2025 earnings per share (EPS) stood at $3.53, beating analyst estimates of $3.02, with actual EPS at $3.38 for the quarter. The tangible book value per share increased by 21% year-over-year to $82.65. The strong financial performance was underpinned by higher loan balances, fixed-rate asset repricing, and lower deposit costs.

Publication Date: Feb -08

📋 Highlights
  • 2025 Net Income:: $833 million, up 36% year-over-year, driven by higher net interest income and lower operating expenses.
  • Net Interest Income (NII) Growth:: Increased by $259 million (11%) in 2025, fueled by loan growth, fixed-rate asset repricing, and reduced deposit costs.
  • Q4 2025 Performance:: Net income of $234 million with EPS of $3.53, reflecting a 12.5% increase in EPS year-over-year.
  • Tangible Book Value:: Rose to $82.65 per share, a 21% annual increase, reflecting capital discipline and earnings retention.
  • Capital Allocation:: $500 million in stock repurchases during 2025 and a 7.1% dividend hike to $0.75 per share, emphasizing shareholder returns.

Guidance and Outlook for 2026

For 2026, Popular, Inc. expects consolidated loan growth of 3-4% and NII growth of 5-7%. The company is targeting a sustainable Return on Tangible Common Equity (ROTCE) of 14%. The guidance suggests continued expansion in net interest margin, driven by low-cost deposit levels and the ability to reduce deposits in the US market. The effective tax rate for 2026 is expected to be between 15% and 17%, with total full-year GAAP expenses increasing by approximately 3% compared to 2025.

Capital Management and Shareholder Returns

Popular, Inc. demonstrated a commitment to returning value to shareholders, repurchasing approximately $500 million in common stock during 2025 and increasing its quarterly common stock dividend by $0.05 to $0.75 per share. The company's capital levels remain strong, with a common equity tier one ratio of 15.7%. The Dividend Yield stands at 1.99%, indicating an attractive return for income-focused investors.

Valuation and Relative Attractiveness

Analyzing Popular, Inc.'s valuation, the Price-to-Tangible Book Value (P/TBV) ratio is approximately 1.54, suggesting the stock is reasonably valued relative to its tangible book value. With a net interest margin (NIM) expected to continue expanding, the company's prospects appear favorable. Analysts estimate revenue growth at 4.5% for the next year, which, combined with the current valuation metrics, indicates a potentially attractive investment opportunity.

3. NewsRoom

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These 3 Popular Retailers Could Be Gone by Christmas

Feb -20

Source: 247wallst.com

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2 Incredibly Popular Stocks to Sell Before They Plummet

Feb -20

Source: fool.com

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Popular Retail Stock Pulling Back Before Earnings

Feb -19

Source: schaeffersresearch.com

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Retirees Are Winning Big in 2026: 3 Popular Dividend Stocks Are Soaring

Feb -19

Source: 247wallst.com

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net2phone Launches Integrated Communications for Hospitality Providers

Feb -19

Source: globenewswire.com

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Best Momentum Stocks to Buy for February 18th

Feb -18

Source:

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PSA: Three Stocks Control 35% of Your Popular Vanguard Growth Fund

Feb -12

Source: 247wallst.com

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Best Value Stocks to Buy for February 10th

Feb -10

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.70%)

6. Segments

Banco Popular De Puerto Rico

Expected Growth: 10%

Banco Popular de Puerto Rico's 10% growth is driven by a strong brand presence, diversified revenue streams, and a solid balance sheet. The bank's focus on digital transformation, expansion into new markets, and strategic partnerships also contribute to its growth. Additionally, a favorable economic environment in Puerto Rico, characterized by low unemployment and increasing tourism, supports the bank's growth momentum.

Popular United States

Expected Growth: 8%

Popular United States' 8% growth is driven by increasing demand for consumer loans, expansion of digital banking channels, and strategic acquisitions. Additionally, a strong brand presence, efficient cost management, and a favorable interest rate environment contribute to the company's growth momentum.

Corporate

Expected Growth: 6%

Popular, Inc.'s 6% corporate growth is driven by strategic expansion into digital banking, increasing demand for mortgage loans, and a strong presence in the Puerto Rican market. Additionally, the company's focus on cost reduction initiatives, investments in technology, and a solid capital position contribute to its growth momentum.

Eliminations

Expected Growth: 4%

Popular, Inc.'s 4% growth is driven by strategic acquisitions, expansion into new markets, and increased lending activities. Additionally, the company's focus on digital transformation, cost savings initiatives, and a favorable interest rate environment have contributed to its growth momentum.

7. Detailed Products

Banco Popular

A full-service bank offering personal and commercial banking services, including checking and savings accounts, credit cards, loans, and investment products.

Popular Securities

A brokerage firm offering investment products and services, including stocks, bonds, mutual funds, and retirement accounts.

Popular Insurance

An insurance company offering a range of insurance products, including auto, home, life, and health insurance.

E-Loan

An online lending platform offering personal loans, mortgages, and credit cards.

Popular Mortgage

A mortgage lender offering a range of mortgage products, including fixed-rate and adjustable-rate mortgages.

8. Popular, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Popular, Inc. is medium due to the presence of alternative banking services and financial institutions.

Bargaining Power Of Customers

The bargaining power of customers is high due to the availability of multiple banking options and the ease of switching between financial institutions.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large scale of operations and its ability to negotiate favorable terms with suppliers.

Threat Of New Entrants

The threat of new entrants is medium due to the regulatory barriers and capital requirements that make it difficult for new banks to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple established banks and financial institutions competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.79%
Debt Cost 6.46%
Equity Weight 82.21%
Equity Cost 8.12%
WACC 7.82%
Leverage 21.63%

11. Quality Control: Popular, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Popular

A-Score: 6.8/10

Value: 6.7

Growth: 5.9

Quality: 7.1

Yield: 5.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
First Bank

A-Score: 6.8/10

Value: 7.1

Growth: 6.6

Quality: 8.2

Yield: 6.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Cathay Bank

A-Score: 6.3/10

Value: 6.0

Growth: 6.1

Quality: 7.4

Yield: 6.0

Momentum: 4.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Citizens Financial Group

A-Score: 6.2/10

Value: 5.3

Growth: 5.2

Quality: 5.9

Yield: 7.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Fulton Financial

A-Score: 6.2/10

Value: 6.3

Growth: 6.3

Quality: 6.1

Yield: 8.0

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Synovus

A-Score: 5.8/10

Value: 7.0

Growth: 5.4

Quality: 7.4

Yield: 6.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

142.19$

Current Price

142.19$

Potential

-0.00%

Expected Cash-Flows